Singapore’s foreign worker levy rate is one of the most important factors to consider when hiring foreign workers. The levy is a monthly fee that employers must pay to the government for each foreign worker they employ. The amount of the levy varies depending on the worker’s nationality, occupation, and sector.
In 2019, the foreign worker levy rate for most sectors was S$330 per month. However, the levy rate for certain sectors, such as construction and marine, was higher. For example, the levy rate for construction workers was S$450 per month, while the levy rate for marine workers was S$650 per month.
The foreign worker levy rate is designed to discourage employers from hiring foreign workers and to encourage them to hire local workers instead. The government has also introduced a number of other measures to reduce the number of foreign workers in Singapore, such as the Fair Consideration Framework and the Progressive Wage Model.
How to Calculate the Foreign Worker Levy
The foreign worker levy is calculated as a percentage of the worker’s monthly salary. The percentage varies depending on the worker’s nationality, occupation, and sector.
For example, the levy for a Bangladeshi construction worker is 40% of the worker’s monthly salary. This means that if the worker’s monthly salary is S$1,000, the levy would be S$400.
How to Pay the Foreign Worker Levy
The foreign worker levy is paid to the Inland Revenue Authority of Singapore (IRAS) on a monthly basis. Employers can pay the levy online, by mail, or at an IRAS office.
Consequences of Not Paying the Foreign Worker Levy
Employers who do not pay the foreign worker levy may be subject to a fine of up to S$10,000 for each offense. They may also be required to pay back the unpaid levy, plus interest.
Conclusion
The foreign worker levy is an important factor to consider when hiring foreign workers in Singapore. Employers should be aware of the levy rate for the workers they intend to hire and should factor the cost of the levy into their hiring budget.
Useful Tables
The following tables provide a summary of the foreign worker levy rates for different sectors and nationalities.
Table 1: Foreign Worker Levy Rates by Sector
| Sector | Levy Rate |
|---|---|
| Construction | S$450 |
| Marine | S$650 |
| Manufacturing | S$330 |
| Services | S$330 |
Table 2: Foreign Worker Levy Rates by Nationality
| Nationality | Levy Rate (%) |
|---|---|
| Bangladesh | 40% |
| China | 35% |
| India | 30% |
| Indonesia | 25% |
| Malaysia | 20% |
Table 3: Progressive Wage Model for Construction Workers
| Year | Levy Rate (S$) |
|---|---|
| 2019 | 450 |
| 2020 | 470 |
| 2021 | 490 |
| 2022 | 510 |
| 2023 | 530 |
Table 4: Fair Consideration Framework for Work Permit Applications
| Criteria | Points |
|---|---|
| Job posting duration | 10 |
| Salary offer | 10 |
| Training provided | 10 |
| Localization plan | 10 |
| Others (e.g., productivity enhancements) | 10 |
